JB Hi-Fi (JBH) shares were unchanged yesterday after the country’s leading electronics retailer revealed that it had seen a slowing in sales growth in recent months.
While JBH maintained its full year guidance for a 21% jump in sales (thanks to the full year contribution from The Good Guys) the company said in an update at the annual meeting yesterday that though momentum slowed in September and October after a strong start to the new year.
Chief executive Richard Murray told the annual meeting in Melbourne that total sales at JB Hi-Fi stores had risen 6.2% in the year to date, compared with growth of 8.8% in July and 14.3% in the year ago period.
On the more accurate same-store sales measure, JBH’s sales growth has slowed noticeably. It was up 3.2% in the year to date, compared with 5.8% in July and 10% in the year-ago period.
At The Good Guys, which was acquired in November of last year total sales are up 3.1% in the year to date after jumping nearly 7% 6.8 in July Same store sales rose 2.4% year to date against the 5.7% in July.
Mr Murray told shareholders sales growth moderated in September and October as JB Hi-Fi went through changes in the timing of key product releases and elevated same-store growth in the previous corresponding period amid highly competitive market conditions.
However, he said the company remains confident that group sales will rise about 21% this year to $6.8 billion, with JB Hi-Fi sales expected to reach $4.65 billion and The Good Guys $2.15 billion.
“In JB Hi-Fi and The Good Guys, we believe we have two unique and relevant brands, particularly in the eyes of our customers,” Mr Murray told the meeting.
“With a customer focused, flexible business model built on diversity of product categories, a globally low cost of doing business and the opportunity to realise meaningful synergies from the strength and scale of the combined Group, we are confident we will maintain our market leading competitive position,” he added.
The shares ended steady on $23.53.
